The QFC Regulatory Authority has recently released two Consultation Papers that describe changes to the regulatory environment for captive insurers, captive managers and insurance intermediaries operating in and from the Qatar Financial Centre (the “QFC”).
The proposals are designed to underpin the development of a regional hub for captive insurance and captive managers that is centred in Qatar. In undertaking this development, the Regulatory Authority will continue to provide a robust and risk-based regulatory regime for captive insurers and captive managers that promotes best-practice international standards. The proposed regime provides an opportunity for industry and commercial enterprises in Qatar, the GCC and the international community to establish captive insurers in the QFC and to use these entities as an efficient risk management tool.
The new insurance regime of the Regulatory Authority will include a dedicated rulebook for captive insurers, the “Captive Insurance Business Rules”, and a dedicated rulebook for captive managers and insurance intermediaries, the “Insurance Mediation Business Rules”. These drafts rules are also being made available today for public consultation.
The two Consultation Papers follow a preliminary Consultation paper that was sent out for comment in June last year to all authorised firms, captive insurers, and captive managers. The responses from the industry greatly assisted the Regulatory Authority in developing draft rules that create the appropriate regulatory regime for the QFC.
The Regulatory Authority Deputy CEO, Michael Ryan welcomed these latest Consultation Papers saying: “Qatar’s insurance market is expected to see substantial growth over the coming years and the Regulatory Authority’s proposed rules are designed to ensure that the appropriate regulatory structure is in place to support the growth of a stable and world-class insurance sector.’’
Feedback on these proposals will assist the Regulatory Authority in the further development of these regimes, its regulatory approach and the preparation of final rules.
The consultation period for responses is open until 5 May 2011.
